Business News: India’s Infra Sector to Witness Significant Growth in Future, Govt Plans Rs 3 Lakh Cr Investment

Business News: The infrastructure sector is instrumental in India’s economic growth, and road infrastructure companies reported mixed results in the second quarter of this year. While revenue and EBITDA declined, profits increased by 42% year over year due to unusual income. However, obstacles arose as early monsoons and elections delayed the pace of road development. In the first half of FY25, just 700 km of roads were built compared to 1,700 km in the same period last year, but the second half improved due to faster projects by the National Highways Authority of India (NHAI) and other initiatives.

Indian Infrastructure Sector Growth

Looking ahead, the sector is expected to grow significantly, boosted by the government’s Rs 3 lakh crore investment plan and more highway projects. Infrastructure businesses are also growing into railways, solar, and electricity transmission, with revenue forecast to climb by 25-30%. Axis Securities recommends HG Infra Engineering, which has a strong order book of Rs 16,624 crores and plans to expand into railways and solar; GR Infra Projects, which has an order book of Rs 19,641 crores and has improved profitability; and J. Kumar Infra Projects, which has an order book of Rs 18,721 crores and expects strong revenue growth over the next 3-4 years. These companies provide great chances for those who are positive about the industry’s future.